So, I have a few credit cards. Nothing crazy. Less than five. And I've acquired them over the years. Per conventional wisdom, I've been requesting modest credit line increases every once in a while and now I have, like, obsenely high credit limits on my cards. More than twice what I make in a year. I keep a low utilization rate; I don't use more than 4 or 5 percent of my total credit limit in a given month. I don't over spend, and I always pay off my balances every month. My credit score is over 800.
I mentioned this to someone recently and they said that some lenders will deny you loans because they'll think you're going to max out your credit cards and then not be able to pay off the loan. This didn't sound right to me, but they went into an anecdote about how they were denied at a mattress store for this very reason. But, I mean, that's stupid, right? If they're checking your credit, they can see if your average utilization rate is low. So, my question is, is having too much credit actually bad? Should I stop requesting credit line increases every year?
Submitted November 19, 2018 at 10:42AM by PerfinanceAdvice https://ift.tt/2QUmDoN
